Michael S. Jeffries, Abercrombie’s CEO, told stock analysts in May that the four-story New York store, which opened in November, has drawn “a very large percentage of international customers, a very large percentage European,” adding, “We are thrilled with what we are learning about running high-volume stores. It gives us huge confidence for the international potential of this brand.” (Abercrombie & Fitch, 2007)
Then, Abercrombie & Fitch decided to expand its brand throughout the european market.
Abercrombie & Fitch has recently opened its first store in Europe. Indeed, on March 22, 2007, Abercrombie & Fitch opened a store in Mayfair, London. It is a big success, indeed the store generated a volume of $280,000 in its first 6 hours of operation. (Abercrombie & Fitch, 2007)
On July 13, 2007, Abercrombie & Fitch Head Office based in New Albany, Ohio, United States of America, announced “its plans to expand its retail presence throughout Europe. The Company is in the process of securing locations in Italy, France, Germany, Spain, Denmark and Sweden and plans to identify additional key locations in the United Kingdom.” (Abercrombie & Fitch, 2007)
Because of the success of the first european store based in London, the Board of management decided that the new team based in England will be responsible for the expansion of the company throughout Europe.
A contract between Abercrombie & Fitch and PBS Real Estate has already been signed. Indeed, “Abercrombie & Fitch has retained PBS Real Estate, LLC (PBS Real Estate), and its Principal Laura Pomerantz, as exclusive European and United Kingdom real estate consultant to identify locations that best support the Abercrombie & Fitch brand attributes.” (Abercrombie & Fitch, 2007)
The Board of Management based in United States of America thinks that it is a good time for expansion throughout Europe. Indeed, Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch stated: “We have been evaluating the European markets for some time and it is clear that the demand for the Abercrombie & Fitch brand is very strong”. He added: “We believe that now is the ideal time for us to execute our international growth strategy with expansion throughout Europe.” (Abercrombie & Fitch, 2007)
As mentioned above, Abercrombie & Fitch plans to expand in many markets throughout Europe. As the Marketing Manager of Abercrombie & Fitch Ltd., based in United Kingdom, I got the responsibility to choose which market is the best in order to keep on making the brand successful.